Title
***REQUEST TO WITHDRAW (SEE ATTACHED MEMO)*** Funding Agreement for Valley Youth Theatre General Obligation Bond Project (Ordinance S-53241) - District 7
Description
Request to authorize the City Manager, or the City Manager's designee, to negotiate and execute a Funding Agreement between the City and the Valley Youth Theatre for the completion of the General Obligation Bond Project and to authorize the City Treasurer to accept funds from the Valley Youth Theatre in support of the Project. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
On November 7, 2023, Phoenix voters passed the City Council-approved $500 million General Obligation (GO) Bond Program. Question 3 of the approved GO Bond Program authorized the issuance of $114,385,000 in GO Bonds to provide funding for education, economic development, reduction of waste, resource management, and arts and culture projects.
The Valley Youth Theatre (“VYT”) operates a theatre located at 525 N. 1st Street, Phoenix, AZ 85004. As part of the GO Bond Program, the City Council authorized $13,902,756 of GO Bond funds for a project to secure land, design and construct a new theatre to provide a permanent home for VYT (the "Project").
The City has procured design and construction firms to complete the Project and the City Council has authorized expenditure of the allotted GO Bond funding, but the total cost of the Project exceeds the total amount allocated. To cover the overages, staff have identified $6 million in capital reserve funds and VYT has agreed to contribute $2,338,402 to complete the Project.
Staff are requesting authorization for the City Manager, or the City Manager's designee, to negotiate and execute a Funding Agreement between the City and VYT that sets out the terms and conditions by which the Project will be funded and completed. Staff are requesting further authorization for the City Treasurer to accept VYT's contributed funds (currently estimated to be $2,338,402, but subject to change based on mutually-agreed upon changes to the Project) pursuant to the terms of the Funding Agreement and for the City Controller to disburse those funds to complete the Project.
Financial Impact
Funding is available in the Office of Arts and Culture Capital Improvement Program Budget through General Obligation Bond funds, Valley Youth Theater contributions and capital reserve funds.
Location
First Street and McKinley
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Office of Arts and Culture.